
Concept explainers
(A)
It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.
Equivalents units for production
The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.
Cost per unit
Total unit cost is the cost incurred by the company to produce one unit of product. The unit cost is calculated by dividing the units produced with the total cost.
The number of whole units to be accounted for.
(B)
The cost of units transferred to finished goods.
(C)
The cost of units in ending work in process.

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Chapter 3 Solutions
Managerial Accounting
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